Pre-Service Rental Deductions vs Capitalization

[Steve Kresse]

I purchased a second rental property in 2017 and it was not in service for about 4 months while repairs were done. I understand that all expenses during the not in service period are added to the basis of the property. My question comes in while reading IRS Publication 527 Page 7 there is a section that says "The following are settlement fees and closing costs you can’t include in your basis in the property." The two items I expensed are Fire insurance premiums and Fees for an appraisal required by a lender. How do I deduct these expenses if they are not to be included in the cost basis? Do I list them as an operating expense on schedule E even though they occurred before the in service date? Or are they included elsewhere as a business expense or startup expense?